By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
24 April 2010
Hotel Lawyer with some advice for investors in distressed notes and receivables involving timeshares, fractionals and vacation clubs. How to buy vacation ownership notes and receivables.
One of the most profitable endeavors for savvy lenders has been acquisition and development loans and consumer receivable financing for vacation ownership projects — timeshare, fractional and vacation club projects. For various reasons that have little to do with the continuing sound fundamentals and continuing consumer demand for such project, the biggest lenders in this area have essentially stopped lending to deal with their other problems. And recently, some opportunistic investors have sought our advice on some potentially exciting loans being sold at a fair discount.
Due diligence is the caveat. (See What have we learned from “The Crash of 2008″? There are no shortcuts for due diligence! There is great opportunity here, but also significant risk that can be ferreted out and analyzed to provide great confidence about the investment. In this article, my colleague and timeshare lawyer David Sudeck, a senior member of JMBM’s Global Hospitality Group®, shares some of his insights on this subject.
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